Saul Centers’ Funds From Operations Reach $25.9 Million in Third Quarter
Key Facts
Saul Centers reported that funds available to common shareholders and noncontrolling interests from operations rose to $25.9 million in the third quarter of 2026, from $25.3 million a year earlier, according to the company’s results. The measure was unchanged at $0.72 per share from the year-earlier period. The company describes funds from operations as a supplemental measure that is not in accordance with generally accepted accounting principles, and says it should be read alongside net income rather than as a substitute for it. On a conventional accounting basis, net income fell to $12.6 million from $14.0 million. Net income available to common shareholders also declined to $6.7 million, or $0.27 per share, from $7.7 million and $0.32 per share a year earlier.
The measures diverged in a quarter when total revenue rose to $78.4 million from $72.0 million in the third quarter of 2025. Meanwhile, same-property revenue increased by $3.5 million, or 4.9% year over year. Net operating income for those properties rose by $2.5 million, equivalent to 5.0%. The results point to improved operating revenue at existing properties alongside a decline in reported net income. The company said net income, excluding the impact related to Hampden House, increased by $2.3 million, driven mainly by a $2.0 million rise in base commercial rent.
The company attributed pressure on quarterly results to the initial operations of Hampden House, which reduced net income by $3.7 million. That impact included $2.9 million related to net interest expense. The project also affected funds from operations: the company said its negative impact was $2.1 million, or $0.06 per share. Excluding Hampden House, the funds-from-operations measure rose by $2.7 million during the quarter. The company linked the increase mainly to higher base commercial rent, while the project’s initial costs continued to weigh on reported results.
Results for the nine months ended September 30 showed a similar pattern of revenue growth and lower net income. Revenue rose to $233.5 million from $214.7 million in the corresponding period of 2025, while net income fell to $36.2 million from $41.0 million. The company said Hampden House’s initial operations reduced net income by $12.5 million during the nine months. Excluding the project, net income rose by $7.7 million, according to the company. At same-property mixed-use properties, net operating income increased by $6.1 million, or 15.2%, and benefited by $6.7 million from the leasing of Twinbrook Quarter Phase I.
Revenue had also risen in the second quarter of 2026 to $76.8 million from $70.8 million a year earlier, while net income fell to $11.5 million from $14.2 million. The comparison provides context for the revenue and net income trajectory during the year, with revenue continuing to grow and net income declining year over year in both quarters. At Hampden House, company data through November 2 showed that 267 of 366 residential units were leased and occupied, or 73.0%. All of the project’s commercial space was also leased. The residential occupancy rate remains an important operating indicator given the impact the company attributed to the project’s initial operations.
In trading, the company’s shares, listed under the ticker BFS, closed at $29.1 on November 4, 2026, and then at $28.81 on November 5. Saul Centers announced in September a quarterly cash dividend of $0.59 per common share. The dividend was scheduled to be paid on October 30, 2026, to shareholders of record. These figures put the cash dividend in the context of the quarter’s results, while occupancy data show continued leasing at Hampden House after the company recorded its impact on net income and funds from operations. The disclosures cited here included no additional figures on subsequent distributions or their timing.